While Beijing has been busily damming up official channels for money to leave China, more funds than ever are leaking out through shady means as investors flee the country’s slowing economy and weakening currency, financial industry executives say. The yuan has fallen more than 6 percent versus the dollar this year, but has been relatively stable against a basket of currencies. The surge in overseas investment heightens foreign exchange risks but also poses potential threats to China’s financial system if these deals start to go bad, analysts at China International Capital Corporation said in a note on Monday. The central bank said it was unable to comment on reports of tighter controls on overseas investments. “As China’s economy recovers and institutional reform improves the business environment, the money that has left will come back,” Yi said.

Source: Indian Express November 28, 2016 08:28 UTC